Dollar rebound and spiking oil prices weighs down INR

The Indian rupee is staying relatively flat to lower against the dollar in opening trades on Monday as dollar staged a massive spike to a 2-week high amid inflationary concerns. Renewed conflict between US and Iran is accentuating inflation concerns at a time when Fed is already sounding hawkish on interest rates. Fed Chairman Kevin Warsh at the Jackson Hole economic symposium warned on Friday that inflation is not slowing significantly and that unless policymakers become confident it is, the central bank has work to do. INR opened at Rs 95.56 per dollar and recovered to a high of 95.40 so far during the day but almost unchanged as compared to previous close at 95.43. Indian shares also opened lower on Monday as investors react to rising oil prices and global bond yields. Brent crude prices jumped more than 2 percent to trade above $90 a barrel after American forces targeted two rocket launches on Iran's Larak Island, killing and wounding several Iranian fighters and civilians.